PROTECTED SOURCE SCRIPT
Bollinger Channel Index Indicator
How does this work:
The two lines of this indicator oscillate between 1 and -1 and quantify the strength of a trend. When the blue line crosses under the yellow line, a sell signal is generated. The opposite is true for when the blue line crosses over the yellow line. The red line represents the overbought area, and the green line represents the oversold area, at 0.7 and -0,7 respectively. When a buy signal is generated below the green line, and a sell signal is generated above the red line, these are usually an indication that a strong up/downtrend is about to begin. Use these signals in conjunction with other indicators or techniques to identify trends.
What do I use this on?
I have done manual testing on forex and it works for me. I have done automated backtesting and it worked on stocks, forex, and commodities. This didn't work well on cryptocurrencies. For the timeframe, I would use 4 hours, but any should work as long as trends are visible. Works best in trending markets.
Technical Details:
This indicator is an adaptation of the Commodity Channel Index. The Commodity Channel Index takes the price, applies a simple moving average to it, and subtracts it from the closing price. This gives us the distance between the two lines, which is how much they deviate from each other. Then the deviation is divided by its mean average deviation. My indicator is also based off of WaveTrend, instead of using simple moving averages, I use exponential moving averages. I also apply an SMA to my version of the CCI line and trade based on crossovers. You can trade based on overbought/oversold or crossovers with my indicator. My indicator does not divide by the mean average deviation. Feel free to use it, but I don't think I will give be giving out the source code.
Disclaimer
This isn't guaranteed to be a financially viable model and I am not accountable for any losses made while using this.
Note:
I have posted a strategy revolving around this before, this script only contains the indicator.
The two lines of this indicator oscillate between 1 and -1 and quantify the strength of a trend. When the blue line crosses under the yellow line, a sell signal is generated. The opposite is true for when the blue line crosses over the yellow line. The red line represents the overbought area, and the green line represents the oversold area, at 0.7 and -0,7 respectively. When a buy signal is generated below the green line, and a sell signal is generated above the red line, these are usually an indication that a strong up/downtrend is about to begin. Use these signals in conjunction with other indicators or techniques to identify trends.
What do I use this on?
I have done manual testing on forex and it works for me. I have done automated backtesting and it worked on stocks, forex, and commodities. This didn't work well on cryptocurrencies. For the timeframe, I would use 4 hours, but any should work as long as trends are visible. Works best in trending markets.
Technical Details:
This indicator is an adaptation of the Commodity Channel Index. The Commodity Channel Index takes the price, applies a simple moving average to it, and subtracts it from the closing price. This gives us the distance between the two lines, which is how much they deviate from each other. Then the deviation is divided by its mean average deviation. My indicator is also based off of WaveTrend, instead of using simple moving averages, I use exponential moving averages. I also apply an SMA to my version of the CCI line and trade based on crossovers. You can trade based on overbought/oversold or crossovers with my indicator. My indicator does not divide by the mean average deviation. Feel free to use it, but I don't think I will give be giving out the source code.
Disclaimer
This isn't guaranteed to be a financially viable model and I am not accountable for any losses made while using this.
Note:
I have posted a strategy revolving around this before, this script only contains the indicator.
Script protegido
Esse script é publicada como código fechado. No entanto, você pode gerenciar suas escolhas de bate-papo. Por favor, abra suas Configurações do perfil
Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.
Script protegido
Esse script é publicada como código fechado. No entanto, você pode gerenciar suas escolhas de bate-papo. Por favor, abra suas Configurações do perfil
Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.